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COVA-1 EXPLORATION DRILLING ENVIRONMENTAL IMPACT STATEMENT

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This Environmental Impact Statement (EIS) presents the outcomes of a detailed environmental impact assessment for the Cova-1 exploration well drilling campaign. It addresses the environmental and social impacts and management issues associated with the drilling of the Cova-1 exploration well. This assessment concludes that the drilling can be managed to achieve its objectives, without causing unacceptable environmental and socio-economic effects.
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COVA-1 EXPLORATION DRILLING
ENVIRONMENTAL IMPACT
STATEMENT
TL-HSE-RP-004

MARCH 2010
Eni Timor Leste S.p.A.
Rua D. Luis dos Reis Noronha no. 56,
Vila Verde, Dili, Timor-Leste
PO Box 52, Dili, Timor-Leste

Tel: +670 331 0847  Fax: +670 331 0849
email: info@enitimorleste.tl
This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.





Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

TABLE OF CONTENTS
ABBREVIATIONS.................................................................................................................... 1
EXECUTIVE SUMMARY ......................................................................................................... 3
1.0 INTRODUCTION........................................................................................................... 15
1.1
Overview of Project ......................................................................................... 15
1.2
Project Proponent ........................................................................................... 15
1.3
Scope and Objectives of this EIS................................................................... 16
1.4
Relevant Legislative Framework and Environmental Approval Process... 16
1.4.1
Environmental Legislative Framework.....................................................................16
1.4.2
Environmental Assessment Process .......................................................................17
1.4.3
Other Legislative Requirements...............................................................................18
1.5
Stakeholder Consultation ............................................................................... 19
2.0 PROJECT DESCRIPTION............................................................................................ 21
2.1
Field Location .................................................................................................. 21
2.2
Previous Activities in the Permit Area........................................................... 21
2.3
Proposed Drilling Program............................................................................. 23
2.4
Drilling Fluids and Cuttings............................................................................ 25
2.5
Core Sample..................................................................................................... 25
2.6
Wireline Evaluation ......................................................................................... 25
2.7
Drilling Support ............................................................................................... 25
2.8
Well Control Procedures................................................................................. 25
2.9
Operational Wastes ......................................................................................... 26
2.10
Drilling Safety .................................................................................................. 26
3.0 PROJECT NEED AND ALTERNATIVES CONSIDERED............................................ 27
3.1
Project Need..................................................................................................... 27
3.2
Alternatives Considered ................................................................................. 27
4.0 DESCRIPTION OF THE ENVIRONMENT.................................................................... 28
4.1
Physical Environment ..................................................................................... 28
4.1.1
Climate .....................................................................................................................28
4.1.2
Oceanography..........................................................................................................32
4.1.3
Seismicity and Tsunamis .........................................................................................37
4.2
Biological Environment .................................................................................. 38
4.2.1
Regional Overview ...................................................................................................38
4.2.2
Bathypelagic Zone ...................................................................................................39
4.2.3
Continental Shelf ......................................................................................................40
This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.




Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

4.2.4
Sea Mounts and Shoals ...........................................................................................40
4.2.5
Coral reefs................................................................................................................41
4.2.6
Zooplankton..............................................................................................................42
4.2.7
Marine Mammals......................................................................................................42
4.2.8
Reptiles.....................................................................................................................43
4.2.9
Fish...........................................................................................................................44
4.2.10
Birds .........................................................................................................................44
4.2.11
Mangroves................................................................................................................45
4.2.12
Conservation Significant Biological Resources .......................................................45
4.2.13
Conservation Areas..................................................................................................54
4.3
Social Environment ......................................................................................... 54
4.3.1
Socio-economic Profile ............................................................................................54
4.3.2
Communities Adjacent to the Drilling Area ..............................................................55
4.3.3
Petroleum Activities..................................................................................................56
4.3.4
Shipping ...................................................................................................................56
4.3.5
Commercial Fishing .................................................................................................56
4.3.6
Shipwrecks and Heritage Sites ................................................................................57
5.0 POTENTIAL IMPACTS AND MANAGEMENT............................................................. 58
5.1
Introduction...................................................................................................... 58
5.2
Environmental Risk Assessment................................................................... 58
5.3
Summary of Risks to the Biophysical Environment .................................... 62
5.4
Hydrocarbon Spills.......................................................................................... 63
5.4.1
Sources ....................................................................................................................63
5.4.2
Properties of Hydrocarbons .....................................................................................63
5.4.3
Fate and Trajectory ..................................................................................................68
5.4.4
Potential Environmental Effects ...............................................................................72
5.4.5
Management of Hydrocarbons.................................................................................73
5.4.6
Spill Response .........................................................................................................74
5.5
Solid and Hazardous Wastes ......................................................................... 74
5.5.1
Source and Characteristics......................................................................................74
5.5.2
Potential Environmental Effects ...............................................................................75
5.5.3
Management of Solid and Hazardous Wastes ........................................................75
5.6
Drilling Discharges.......................................................................................... 76
5.6.1
Source and Characteristics......................................................................................76
5.6.2
Potential Environmental Effects ...............................................................................78
5.6.3
Management of Drilling Discharges .........................................................................82
5.7
Atmospheric Emissions.................................................................................. 83
5.7.1
Source and Characteristics......................................................................................83
5.7.2
Potential Environmental Effects ...............................................................................84
5.7.3
Management of Atmospheric Emissions .................................................................84
This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.




Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

5.8
Liquid Waste Streams ..................................................................................... 85
5.8.1
Source and Characteristics......................................................................................85
5.8.2
Potential Environmental Effects ...............................................................................86
5.8.3
Management of Liquid Wastes ................................................................................87
5.9
Marine Pests .................................................................................................... 88
5.9.1
Source and Characteristics......................................................................................88
5.9.2
Potential Environmental Effects ...............................................................................88
5.9.3
Management of Marine Pests ..................................................................................89
5.10
Noise and Light Disturbance.......................................................................... 89
5.10.1
Source and Characteristics......................................................................................89
5.10.2
Potential Environmental Effects ...............................................................................90
5.10.3
Management of Noise and Light Disturbance .........................................................91
5.11
Socio-Economic Impacts................................................................................ 91
5.11.1
Socio-Economic Development.................................................................................91
5.11.2
Fisheries ...................................................................................................................91
5.11.3
Tourism.....................................................................................................................92
5.11.4
Shipping ...................................................................................................................92
5.11.5
Amenity, National Parks and Conservation Reserves.............................................92
6.0 MANAGEMENT MEASURES AND COMMITMENTS.................................................. 93
6.1
Environmental Management Framework ...................................................... 93
6.1.1
Guiding Principles ....................................................................................................93
6.1.2
HSE Integrated Management System .....................................................................93
6.1.3
HSE Policy ...............................................................................................................93
6.2
Environmental Management Plan .................................................................. 94
6.3
Monitoring Program ........................................................................................ 94
6.4
Summary of Management Commitments...................................................... 96
7.0 REFERENCES ............................................................................................................. 99
APPENDICES
Appendix A Eni Health, Safety and Environment Policy
103
Appendix B Vessel Specifications
105

This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.




Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

TABLES
Table ES.1 Summary of Eni’s Management Measures and Commitments ......................... 13
Table 1.1
Relevant Legislation, Codes of Practice and International Agreements for
the Drilling Campaign. ....................................................................................... 18
Table 1.2
Organisations and representatives invited to attend Eni’s Cova-1
exploration drilling stakeholder forum................................................................ 20
Table 2.1
Geographical Coordinates of the Proposed Cova-1 Well.................................. 21
Table 4.1:
Standard tide levels for Cova-1 (Fugro, 2009). ................................................. 33
Table 4.2 Monthly and All-year Surface Seawater Temperature Statistics (Fugro,
2009). ................................................................................................................ 34
Table 4.3 All-year Seawater Temperature Profile (Fugro, 2009). .......................................... 35
Table 4.4 All-year Seawater Salinity Profile (Fugro, 2009). ................................................... 35
Table 4.5
Seabirds species on Ashmore Reef and at sea within the Timor MOU74
Box during a survey between September and October, 1998 (CSIRO
1999b). .............................................................................................................. 45
Table 4 6
Protected marine species listed under EPBC Act potentially occurring
within a 100km radius of the proposed Cova well location (EPBC
Protected Matters Database Search). ............................................................... 47
Table 5.1
Eni Risk Matrix................................................................................................... 60
Table 5.2
Environmental Consequence Descriptors ......................................................... 61
Table 5.3
Summary of Cova-1 Drilling Inherent Environmental Risks............................... 62
Table 5.4
Anticipated properties of Cova Crude................................................................ 64
Table 5.5
Properties of Diesel Fuel Oil (from ADIOS2 database). .................................... 66
Table 5.6
Summary of modelled oil spill scenarios. .......................................................... 68
Table 5.7
Summary of Safeguards to Manage Hydrocarbons. ......................................... 73
Table 5.8
Typical Water Based Drilling Fluid System Formulation.................................... 77
Table 5.9
Potential Air Emissions and Sources................................................................. 83
Table 6.1
Operational Monitoring Program. ...................................................................... 95
Table 6.2
Summary of Commitments for the Cova-1 drilling program. ............................. 96

This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.




Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

FIGURES
Figure ES.1 Cova-1 Well Location. ......................................................................................... 4
Figure ES.2 Saipem 10000. .................................................................................................... 5
Figure ES.3 Regional Bathymetry. .......................................................................................... 7
Figure 2.1
Cova-1 Well Location. ...................................................................................... 22
Figure 2.2
Saipem 10000. .................................................................................................. 23
Figure 2.3
Cova-1 Well Schematic. .................................................................................... 24
Figure 4.1
Generalised Atmospheric Circulation over Australia in Winter (July) (from
Swan et. al. 1994).............................................................................................. 28
Figure 4.2
Generalised Atmospheric Circulation over Australia in Summer (January)
(from Swan et. al. 1994). ................................................................................... 29
Figure 4.3
Tropical cyclones crossing within 200km of 10° 15’ 45.19”S 125° 55’
58.65”E (1970 to 2006) (BOM 2009). ................................................................ 30
Figure 4.4: Seasonal wind roses for the Timor Sea (Saipem Energy Services, 2009)........ 31
Figure 4.5: Regional Currents (CSIRO, 2004)..................................................................... 32
Figure 4.6
Bathymetry of the Cova well location. ............................................................... 36
Figure 4.7
Regional bathymetry.......................................................................................... 37
Figure 4.8
Indo-West Pacific biogeographical province...................................................... 39
Figure 5.1
Risk Assessment Methodology. ........................................................................ 59
Figure 5.2
Predicted weathering of Kitan oil (based on a continuous release of
9,000m3 spill over 5 days for a 4ms-1 wind). ...................................................... 65
Figure 5.3
Predicted weathering of diesel fuel oil (based on a continuous release of
80m3 over 6 hours for a 4ms-1 wind).................................................................. 67
Figure 5.4
Probability of surface exposure at day 5 under winter conditions from a
9000m3 spill of crude oil occurring over a 5 day period. .................................... 70
Figure 5.5
Predicted minimum time to exposure under winter conditions from a
9000m3 spill of crude oil occurring over a 5 day period. .................................... 70
Figure 5.6
Probability of surface exposure at day 5 under winter conditions from a
80m3 spill of diesel occurring over a 6 hour period............................................ 71
Figure 5.7
Predicted minimum time to exposure under winter conditions from a 80m3
spill of diesel occurring over a 6 hour period. .................................................... 71
Figure 5.8
Predicted distribution of drill cuttings during the Cova-1 drilling campaign
(Sustainability 2010b). ....................................................................................... 81

This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.




Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

ABBREVIATIONS
ADIOS2
Automated Data Inquiry for Oil Spills
ALARP
As Low As Reasonably Practicable
ANP
Autoridade Nacional do Petroleo (National Petroleum Authority)
BBL Barrel
BOD
Biological Oxygen Demand
BOP Blow-out
Preventer
CAMBA
China-Australia Migratory Bird Agreement
CITES
Convention on International Trade in Endangered Species
CMP
Crisis Management Plan
CMS
Convention on Migratory Species
DNMA
Direcção Nacional do Meio Ambient (National Directorate of Environment)
DNPA
Direcção Nacional de Pescas e Aquiculture (National Directorate of
Fisheries & Aquaculture
DNPG
Direcção Nacional de Petróleo e Gas (National Directorate of Petroleum &
Gas)
EIA
Environmental Impact Assessment
EIS
Environmental Impact Statement
EMP
Environmental Management Plan
Eni
Eni Timor Leste S.p.A.
EPBC
Environment Protection and Biodiversity Conservation
EPBC Act
Environment Protection and Biodiversity Conservation Act 1999
ESD Emergency
Shutdown
FoR Framework
of
Reference
FPSO
Floating Production Storage and Offloading
GDP
Gross Domestic Product
HSE
Health, Safety and Environment
IMS Integrated
Management
System
IUCN
International Union for the Conservation of Nature
JAMBA
Japan- Australia Migratory Bird Agreement
JPDA
Joint Petroleum Development Area
KCl Potassium
Chloride
LAT
Lowest Astronomical Tide
MARPOL 73/78 International Convention for the Prevention of Pollution from Ships, 1973,
as modified by the Protocol of 1978 relating thereto
MMO
Marine Mammal Observers
MP Management
Plan
NGO Non-government
Organisation
OBM
Oil Based Mud
This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.

Page 1



Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

ODS
Ozone Depleting Substances
OIW
Oil in Water
OSCP
Oil Spill Contingency Plan
PHG Prehydrated
gel
PHPA Partially-hyrolyzed
polyacrylamide
PSC Production
Sharing
Contract
PSV
Platform Supply Vessel
ROV Remotely
Operated
Vehicle
SBM
Synthetic Based Mud
SERN
Secretariat for Natural Resources
SOI
Southern Oscillation Index
UN United
Nations
UNCLOS
United Nations Convention on the Law of the Sea
WBM
Water Based Mud

This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.

Page 2



Cova-1 Exploration Drilling Environmental Impact Statement
TL-HSE-RP-004
March 2010

EXECUTIVE SUMMARY
This Environmental Impact Statement (EIS) presents the outcomes of a detailed
environmental impact assessment for the Cova-1 exploration well drilling campaign.
It addresses the environmental and social impacts and management issues
associated with the drilling of the Cova-1 exploration well. This assessment
concludes that the drilling can be managed to achieve its objectives, without causing
unacceptable environmental and socio-economic effects.
INTRODUCTION
Background
Eni Timor Leste S.p.A. (Eni) proposes to drill the Cova-1 exploration well in deep
waters (~1,900m) in permit areas S-06-03 (Contract Area C). The permit is located
in the northern Bonaparte Basin in Timor Leste sovereign waters, approximately
100km from the southeast coast of Timor Leste, approximately 125km south of Dili
and approximately 725km northwest of Darwin (Figure ES.1).
The campaign will last approximately 45 days, with drilling scheduled to commence
in September 2010. Cova-1 will be drilled by the Saipem 10000 drillship.
The Proponent
The proponent of this proposal is Eni Timor Leste S.p.A (Eni). Eni’s contact details
are:
Eni Timor Leste S.p.A
Rua D. Luis dos Reis Noronha no. 56,
Vila Verde, Dili, Timor-Leste
PO Box 52, Dili, Timor-Leste

Tel: +670 331 0847
Production Sharing Contract (PSC) S06-03 is a joint venture between Eni (80%), KG
Timor Leste Limited (10%) and Galp Exploration and Production (Timor Leste) SA
(10%).

This document is the property of Eni Timor Leste S.p.A.
This document will be deemed uncontrolled when printed.

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